Govt. tendering process rigged - Keorapetse
The Umbrella for Democratic Change (UDC) believes that corruption and mismanagement resulting in wasteful expenditure, maladministration, unethical governance, secrecy and non-accountability are bleeding the economy.
Responding to the State of the Nation Address this week, Leader of Opposition, Dithapelo Keorapetse said corruption has eroded trust in public institutions and consequently sullied the legitimacy of government.
Keorapetse said there is a group of predominantly Chinese Companies and other foreign entities which are able to get public policy decisions and or executive decrees in a manner that has repurposed the state to suit their interests and those of their beneficiaries.
He told Parliament that the entire government tendering system is rigged. At the centre of the whole tendering system crisis is the Directorate of Intelligence Security (DIS), Keorapetse said, adding that the public has lost hundreds of million as a result.
“Projects have stalled with price escalations becoming another burden on the fiscus. For instance, on 25 February 2019, the Roads Department under the Ministry of Transport and Communications, now Ministry of Transport and Public Works, as the Procuring Ministry, published the invitation to submit Tender Proposals for the CONSTRUCTION OF THE MOGODITSHANE – GABANE – MMANKGODI JUNCTION ROAD TO DUAL CARRIAGEWAY STANDARD: TENDER NO. WOR 7/17/9 (I) – and it was only on 10 April 2019, the closing date that tender offers were received.
A Recommendation to award was only made on 2 July 2021 (28 months). The Consolidated Contractors Company (Kuwait) W.L.L; and, Stefanutti Stocks (Proprietary) Limited (“the CCC/SS JV”) emerged as the best evaluated bidder, and it was recommended for award – as per correspondence addressed to the PPADB on 2 July 2021, by the Procuring Ministry.
“Initially this tender would be done at about P900 million, at award it was P1,4 billion and chances are that it will be done by about P2billion,” Keorapetse said Wednesday.
The legislator revealed that according to a Savingram from Permanent Secretary to President (PSP) Emmah Peloetletse to Permanent Secretary at Transport Ministry dated 23 November 2021, states that "at the meeting of the 5th October 2021 attended by MTC, PPADB, GICO, MFED, and DIS representatives, they resolved that the investigation undertaken by DIS or any other institution should not stop the project, but could continue parallel to its implementation.
DIS would pursue this matter as they deem fit. There is no mention of the DCEC because there is no corruption investigation against the preferred company.”
According to Keorapetse, the project is stalled by an attempt to undermine an objective process of evaluation and recommendation for award so that the company which is number two is ultimately awarded. He said it is believed in the industry that it may be that some highly placed people got kickbacks beforehand.
“As if that was not enough, the company which was number two in the aforesaid project evaluation, has recently been awarded a P2.2 billion, NSWC Mmamashia-Palapye Water Pipeline Contract 1, 2.2 even though it didn’t qualify.
“Evaluation placed Khato Civil at number one, China Jin Su number two and a company which was number three and was P100 million up was awarded. How did that happen? Won’t you agree with those who say the company has paid kickbacks upfront? I don’t see any plausible explanation. That is the reason why the PS, Lands and Water resigned and ran away!” Keorapetse, who is also MP for Selibe-Phikwe West, said.
The MP stated that as at June 2022, the Office of the Receiver has received 38 court orders for seizure of properties of various descriptions. The office, he said has seized money, vehicles, cattle, office furniture, and immovable property, offices and residential.
As at March 2022, total Property Portfolio Under Receiver’s Management stood at P230, 732, 163.42 including cash at bank of P148, 847, 861.17 and residential properties worth P42, 753,000.00, revealed Keorapetse. He told Parliament that the DCEC Director General Tymon Katlholo estimated in June 2022 that P600 million was lost in corruption over the last 11 months looking at the cases he has investigated.
According to the directorate, corruption has grown in sophistry, complexity and value, thus mutating from petty to grand corruption, Keorapetse said, adding that the disheartening fact is that high profile cases seldom result in conviction whilst some are never prosecuted.